Dow: Dividend Is Destroying The Company, Beware
Summary
- Dow's nearly 10% dividend yield is unsustainable, driven by a collapsing stock price and negative earnings, not strong fundamentals.
- The company is bleeding cash, with payout ratios far exceeding profits and cash flow, making a dividend cut inevitable for survival.
- Macroeconomic headwinds, including potential EU tariffs and restructuring in Europe, further threaten Dow's already fragile financial position.
- Despite the tempting yield, Dow is not a buying opportunity; investors should expect a dividend cut and avoid chasing this risky payout.
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